LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 166 SLS 23RS 372
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 7, 2023 1:54 PM Author: JACKSON
Dept./Agy.: Statewide
Subject: Capital Outlay Analyst: Tanesha Morgan
CAPITAL OUTLAY EN DECREASE LF EX See Note Page 1 of 1
Authorizes the division of administration to waive local match requirements for certain nonstate entity projects. (gov sig)
Present law requires nonstate entities applying for capital outlay funding to provide a match of not less than 25% of the total
requested funding amount with the following exceptions:
(1) Projects deemed to be an emergency by the commissioner of administration. (2) Projects for which a nonstate entity has
demonstrated its inability to provide a local match. (3) A water or sewer project for a system servicing 1,250 or fewer
connections. (4) A project undertaken by a governmental entity to provide natural gas utility services for a system that
services 1,250 or fewer connections.
Proposed law adds an exception that the division of administration may, at its discretion, waive the entire match or a portion
thereof for a project undertaken by a municipality with a population of less than 6,000 or parish with a population of less
than 7,500 which has demonstrated its inability to provide a local match.
Proposed law provides for specific information which shall be provided by the municipality or parish to DOA.
EXPENDITURES 2023-24 2024-25 2025-26 2026-27 2027-28 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds DECREASE DECREASE DECREASE DECREASE DECREASE
Annual Total
REVENUES 2023-24 2024-25 2025-26 2026-27 2027-28 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
This measure is anticipated to reduce local expenditures given that it expands the criteria for exception from the 25% local
match requirement for certain local capital outlay projects. The amount of this decrease is indeterminable as it depends on
the number of approved local projects and the project's total cost. However, the enactment of the proposed legislation may
encourage more municipalities or parishes to apply for capital outlay funds since they may be exempt from the 25% match
requirement.
Note: This measure has no impact on state expenditures since the number of capital outlay projects and the amount of
capital outlay spending are functions of the state's available debt capacity, which is not impacted by the proposed change to
non-state entity projects. The line of credit for non-state entity projects is currently limited to no more than 25% of the cash
line of credit for projects. Therefore the same total amount will be appropriated for non-state entity projects. However, this
may impact how the total line of credit for non-state entity projects is allocated on a per-project basis.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer